A wise man once said “You can’t buy insurance when you need it.” This is so true. If your house catches fire and you are not insured, then that’s the time you need insurance the most. Unfortunately nobody will sell you an insurance at that time when you need it the most. Lot of small business owners run their business for several years without ever thinking about insurance. They are so busy running their business, that insurance is quite often an area of neglect.
Let’s discuss some benefits of insurance to business. All of them may not be applicable for your business, but some of them might be applicable for your business. Also remember, that these are only some of the common insurances available. An insurance agent once told me he could get me insured for anything under the sun. So, analyze the most important areas in your business that could potentially destroy you and get yourself business insured against these risks.
Insurance for your inventory – If you are a retail business and you have inventory, your inventory can be insured. This usually does not cover pilferage and petty thefts from customers.
Fire and Burglary – This insurance covers burglary and fire. In case, your equipment, furniture or other items in your office catch fire or there is a burglary, this insurance covers the cost of damage.
Fidelity Insurance – This insurance covers employee theft. If any of your employees steals from your business, this insurance could come in handy.
Professional Indemnity Insurance – This insurance covers you for professional negligence. If you are providing a service in return for compensation, then you are treated as a professional. As a professional you are supposed to provide your services with utmost care and conviction to the best of your ability. If you get sued for professional negligence, then this insurance can save you from financial distress. This could come in handy especially if you are a doctor, dentist or if you are a service based business.
Besides the insurances listed above, there is insurance for almost everything under the sun like personal injury at the workplace, loss of income insurance, etc. Check with your local insurance consultant or an insurance agent to identify the insurances required for your business.
And ask your agent the benefits of insurance to business and figure out if it is applicable to your business before you sign up for it.